Restaurant search and discovery service, Zomato announced today that it has acquired Urbanspoon for an undisclosed amount in an all-cash deal. The acquisition marks Zomato’s entry into the United States.
Urbanspoon is an IAC-owned restaurant information and recommendation service that operates in Australia, Canada, New Zealand, Ireland, the United Kingdom and the United States.
Hence this acquisition also establishes Zomato’s presence in Australia and Canada, while adding to its position in United Kingdom and New Zealand. After the acquisition, Zomato will be present in 22 countries across the world. Its restaurant coverage will increase from about 300k restaurants to more than 1 million restaurants across the globe.
“The biggest challenge and most fun part of this move, however, is the fight we’re going to be picking with Yelp.” said Deepinder Goyal, CEO, Zomato. The company also shared the below infographic on its blog showcasing Zomato’s and Urbanspoon’s individual strengths.
The teams will be working closely over the coming months to integrate Urbanspoon into Zomato. In due course of time, all Urbanspoon traffic will move to Zomato.com, and all Urbanspoon app users will be able to use the Zomato app. This acquisition also has a lot to offer to restaurant businesses. Zomato’s hyperlocal advertising model, combined with the Zomato for Business app suite, will allow restaurant businesses to reach out to, connect with, and engage customers like never before.
This is Zomato’s sixth acquisition in the last six months, and the biggest one. Zomato has recently acquired local dominant restaurant search players in New Zealand, Poland, Czech Republic, Slovakia and Italy.Category Ecommerce Investments